supply-side policies
Policies that include: Business Finance, Strategic Business Attraction, Domestic Recruitment, Workforce Preparation and Development, Community Assistance, Tourism/Film) each reflect an emphasis on direct cost reduction and administrative passivity… The supply-oriented theory that informed state and local economic development policy through the early 1980s is derived from classical location theory. Within this framework local or regional economic growth is a function of input costs (land, labor, and capital) because the demand for new goods is understood as endogenous to the price of those goods. In other words, the only way to stimulate growth is to reduce production costs. Working with these assumptions, the role of state and local economic development policy is to fashion locational advantages by subsidizing or otherwise reducing the cost of factors of production… Supply-side policies are focused on direct input cost reduction and are administratively passive in terms of business strategy. (Hanley, 2014)